Quiz- shareholder's equity with answers

26/04/21



1. How much is the total shareholder’s equity of Hollow Corporation?


Preference share issued (10,000,000 – 3,600,000) P 6,400,000
Ordinary share issued (4,000,000 – 2,000,000) 2,000,000
Subscribed preference share 600,000
Subscribed ordinary share 440,000
Share premium 1,700,000
Accumulated profit 2,000,000
Treasury shares (1,360,000)
Shareholder’s equity P 11,780,000




2. What is the total shareholder’s equity of Steam Company for the year ended December 31,
2014?


Ordinary share capital, par 100 500,000
Share premium-ordinary share 50,000
Share premium-treasury share 15,000
Ordinary share option warrants 100,000
Donated capital 40,000
Accumulated profits and losses 135,000
Treasury share, at cost (20,000)
Total shareholders’ equity P 820,000




3. What would be the balance of the Retained Earnings account after this sale?



Retained earnings P750,000
Net loss (50,000)
Retained earnings after the sale P700,000